The date for submitting Corporate Tax Returns in the UAE was extended. This deadline was announced to facilitate the corporate sector of the United Arab Emirates UAE. This extension allowed additional time for businesses, organizations, and corporations. Furthermore, it also assisted them in ensuring companies with the current changes to the tax laws and regulations.
Businesses are supposed to face evolving tax rules and regulations in a better way. To serve better, a deadline was announced with the aim of facilitating the business sector of United Arab Emirates. According to sources, Federal Tax Authority FTA operating in the UAE officially extended the deadline nationwide before in order to serve and support well. This was an attempt by Federal Tax Authority (FTA) to encourage the business sector to submit their corporate tax returns in country. Additionally, a new deadline was also given before to improve the process and its utility. The deadlines were applicable specifically to short tax periods.
Question here arises: who was affected by this extension in the period?
The most impacted stakeholders are companies that have brief tax periods. Typically this occurs when a company is relatively new or experiences the changes to its financial reporting year. The businesses and companies that choose a fiscal year ending before February 2024 are affected.
They had plenty of time till the end of the year 2024. They could easily file for their corporate tax returns in the UAE. This extension was expected to provide a huge relief to the companies and businesses. The struggling businesses can now easily and conveniently adjust to the new corporate tax framework of the UAE.
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Furthermore, this permitted more time for businesses to ensure their financial records are adequately presented. This also allowed more accuracy to the financial records and also business to be complete within 2024. There is a Rationale Behind the decision-making of the extension in the filing of corporate tax returns in the UAE. This aligns with the government’s dedication to facilitate the businesses in the country.
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Besides, it underscores a commitment towards a business-friendly environment in the region. The introduction of the corporation tax was relatively a new concept in the UAE. It was officially effective in 2023. This initiative was a transitional shift in the government policy in regard to corporate tax returns in the UAE. This has directly impacted the companies in the country. Previously, companies and businesses were accustomed to operating in a completely tax-free environment.
The government has realized the need that corporations and organizations in the country require time to fully adopt the new corporate tax requirements. Furthermore, the Federal tax authority FTA has made the decision to extend the deadline to allow time for them and give them space to adapt to the new big change.
This provided the companies and corporates in the UAE with an opportunity to carefully assess their tax liabilities in the current year. This will help them to file accurate, concise, and complete tax returns. Additionally, this will ensure compliance in the near future without extra burdening them.
It also releases the undue pressures and burdens away from the companies and corporates.
This extension of the corporate tax returns will encourage the reprieve for the companies and businesses. Additionally, it will grant them additional time while it reflects the Federal Tax Authority FTA to support the UAE business community during this transformational phase. This regulatory change allows the UAE to diversify its economy and also align with the best proactive globally. The business community of UAE can take full leverage of the extension in the deadline of filing for the corporate tax return to ensure compliance and combat tax avoidance and tax evasion.
NOTE: It’s just a discussion, we suggest to consult the local authorities and lawyers for taking any decisions. No liability is owned.
